Ideanomics, Inc. (IDEX) Earnings Call Transcript & Summary

[Audio Gap] Ideanomics. We are heavily involved in the ESG space and specifically EV. You can look at obviously our ticker similar IDEX, please check out what we have. But the company we're here to talk about today is a Energica. Energica really excites us because of several things. One is the people and the other is the tech. The tech is -- I mean both are amazing. The tech is going to be used for many other things, not just amazing motorcycles, which Livia and others will get into. And we're really -- we're very, very bullish on that. So very much looking forward to really making this company a huge success story, bigger than it is now. And with that, I turn it over to Livia.

Thank you, everybody, for being here. I'm very excited to be here talking to all of you. I'm Livia Cevolini, I'm the CEO of Energica Motor Company. Here are the people that are living with me in the company. Actually, this company is the newborn of some of our family companies. We are from the Italian Motor Valley. So when you grow up in the Italian Motor Valley, everybody is expecting you to be perfect because over there, there are only perfect companies, doing perfect stuff. We just can name a few of them, but I grew up looking at Ferrari, looking at Maserati, Lamborghini, Ducati, Dallara. So it's really difficult when you try to do your business, when you know that you are doing something new and you have that example. So what people is expecting, what customers are expecting from us and what ourselves are expecting from ourselves is to be perfect, is to do the perfect thing, is to do the perfect car or the perfect motorcycle. So that was actually the thing that I always been thinking since the beginning. So these are the people that are working with us in this company trying to do the leading of the perfect electric vehicles, electric motorcycles, but now, and we will see what. So here, you see Giampiero Testoni, who is our CTO. He has more than 20 years of experience in IC motorcycles and unique experience in electric motorcycles, not any motorcycles but top performance motorcycles, racing with the MotoE, single manufacturer, that we are seeing some -- more than 4 years ago and with the high-performance road motorcycles. And then there is Andrea Vezzani, who is our CFO, and he has a long experience both in major companies like McDonald's and also in growing companies like us now. And Carlo Iacovini who will introduce himself later and he is the new General Manager of Energica Inside business unit; and Stefano Bennatti, who is our CEO of the Energica Motor Company, Inc., that is our U.S. subsidiary. So what we are doing? We are doing perfect motorcycles, electric motorcycles. We have been -- always been the best in the market with our own products. So we have the best power, the highest power, the highest store compared to our competitors. And now we have also the highest -- the longest range, thanks to our 21.5 kilowatt battery that is unique in the market. And we have also the fast charge. We are the only one now to have both the possibility to choose for the customers, both the [indiscernible] and the combo protocols for fast charging. It means that we are fully able to charge fast charging in the 2-wheelers, both in Asian countries and Europe and American countries. And that's absolutely unique. There is no one else in the world able to do this on the 2-wheelers. And finally, of course, there is also the premium, the value for a premium. So despite all these unique performances that we have, we are still at the same price of our competitors. So -- sometimes we are lower. So what we were able to do is to do still the perfect product, but still competitive with our market. So on the right side, it is newer now. You saw the lineup. Anyway, on the right side of the screen, you see on the top, the EGO that is our sport bike with the highest performance. And then there is EVA Ribelle, Streetfighter and EsseEsse9 that is the classic one. Again, EsseEsse9 is the name of the road of our [ Romanic ] road that is crossing the whole MonteCarlo body. So it's going from Parma, [indiscernible], down to the Romania, the name that is most famous for the most sports industry in Romania is Valentino Rossi. So we are crossing all the main countries for the best vehicles in the world, and this is the road, and that's why we decided to call one of our products with this name. So again, the big batteries that is -- that we introduced 2 years ago. The EMCE motor and inverter that allowed us last year to introduce even more power and torque with less weight. And at the end, also the [indiscernible] that allowed us last year to reach from 0 to 60 miles per hour in 2.6 seconds with a robot, not a person. This is a robot's performance. So this is how we want to reach a 2027 business plan. So you can see that in a few years, that the goal is to reach slightly more than $0.5 billion of revenues and how, with 2 business units. One is with the motorcycle sales. Now we are already on a run rate around more than 50% of last year revenues, including the backlog despite it's still small numbers, we are increasing year-on-year. And the second revenues are done with the business unit Energica Inside, we will talk later. And so what we do with the business with Energica Inside is mainly engineering services for third parties and what we call systems for other projects, for other markets. So if I mean batteries, modules, inverters and those markets. So it's depending on what the customers will require. We have the complete control of the process going from engineering, we have done everything inside from engineering down to the customer service, down to the wire and the after sales. We cover still now, and we always cover the whole process of sales engineering and manufacturing. So this long experience, unique experience of 12 years, we are putting in the hands of our customers. And this will allow them to fill the gap and to be much weaker on the market and to have the credibility that we gain with the 12 years of unique experience on the 100% EV market. How? Growing a lot. So this is what we're doing from people point of view. So we were only a little more than 50 people 1 year ago, and now we are more than 100, and we will keep growing because companies are made with people, with the right people, but we need to grow in order to address all the different challenges that we are facing. And where? Mainly in R&D department, of course, and in the operations. These are our buildings, only 2 of the say that we are planning actually. So in square feet, it should be around 36,000 square feet of operations and almost a 31,000 square feet in services and offices. All of this in the Italian Motor Valley and the logistics also are integrated. And a third building in -- around the third quarter of this year should be added with only R&D prototyping and quality control. And now I'll pass the call to Carlo.

Thank you, everyone, and very pleased meet you. I'm Carlo Lacovini, General Manager of Energica Inside. And just to introduce myself, well, I've just spent 25 years of work in the mobility sector, whether it's automotive, share electric and [indiscernible]. So I am a fan of Energia because I was with Energica when the company was born at the very early beginning, so -- for a few years. And then I had a small window for an American company, and then I was more than honored to -- a few months ago to join back the company to lead the Energica Inside and build the next act. And as Livia saying, Energica Inside is the answer to a very, very simple question. How can we maximize the value that an energy craft has built in these 12 years? Livia has shared some experience on how they build an excellent product, an excellent product in the motorcycle industry and say, okay, we generated so much value as a company in designing the motorcycles, prototyping, producing, servicing, selling services, all with a global network around the world. Okay, how can we create more revenue on top of that? So okay, the best answer is let's make this competence and this experience available for third parties because it has been weak, we generate more value for Energica because we can grow. And we can help other companies entering into the electric. We know that the transition is a must and ideanomics has a clear reason on this point. So we said, okay, we need integration. So Energica Inside has the first goal, which is clearly support all the group and all the other companies group and sharing what we have learned, whether it's on designing power bank, whether it's in building our sales network, we can share our mistakes, our challenges, maybe we can help fasten the process for other companies. So we can basically leverage the Energica knowledge on the other side and goal, we want to create a global channel. The economics group is a global champion in the EV and Energica want to be a part and want to leverage what it has learned to have fasten these steps. Why this? Because what we have learned in the last viewing else is that the market and the industries mainly means they have 2 priorities. They need competences in this space, and they don't have time. We know that EV transition is now, and we cannot wait too many years to actually to do it. It's a competitive advantage. So we say, okay, let's again -- based on Energica's side, and based on these 2 assumptions, we can build a win-win situation. The 4 main pieces of the puzzle of our -- of the value proposition is on the top left, the Energica core competence so far. Since the last 2 years, we have already been working on low volters or -- so laying what we can call live mobility or scooter moped and designing technologies for those industries. And then you have the 2 below components, which are the mechanical part, which means that what we have learned also is that when you have a product and you design a prototype and then you need to go into a pre-series, there is -- this a big challenge because you need to bring to industry, but you are on the designing phase. And so in this case, you need to have a strong partner that can help you producing the small volume parts, giving you samples, giving you prototypes. So we have suffered the paying off all of this with the motorcycle. So it's, okay, let's see if we can internalize some of these competencies because this can be another value for timing and for cost. And the fourth part is software. We know that when we address the electric powertrains at technology, it's all about software. So we have designed a very wonderful, I would say, powertrains and technology. But this doesn't mean that this can apply to every other industry. So when it comes to calibrate differently to change VCU,change the mapping, change how the electric motor works, then it's all about software. So we have designed and we have all the resources and the competencies inside Energica for the motorcycles that we have seen below. But when it comes to scale to other many other verticals, as we see, we want to expand on the software side. Why? Because we need to adopt anti-control, anti-propulsion on robotics and autonomous. So we have an M&A ongoing, and that will be further informed later. Where do we want to go? We try to make a map, a very simple map. We have 2 priorities, volume and demand aches. I think it's quite easy to reason. From certain point, we want to stay on the top left because we know that -- and Livia was saying we are focused on excellence. And so racing is also part of the DNA of the company after 4 years of the MotoGP MotoE. And so we want to stay on the racing side. The racing is actually -- now the electric transition is also now targeting many other racing industries, whether are cars or flying cars or other kind of vehicles. So we want to keep an eye on that. There is all the EV and Aviation area, which is a perfect example where our powertrain can be very powerful and very helpful, but some cases even too much. We were talking with a small aircraft manufacturer. And he was saying that we would love to have Energica's powertrain, but it's too powerful. So it can be used for an acrobatic play, but maybe for the commercial application it will be even less. And so this is another way, another opportunity where we share synergies because the platform that Energica is building in the next future for the future vehicles, the future motorcycles can actually be easily applied to other verticals. For example, also the marine -- the marine side or the agriculture, like we are talking with obviously on the right bottom, we go into large volume, where again, we can work together within the [indiscernible] family. And also, we are working with other brands in Italy and globally that are working on a scooter delivery solutions and -- so we cover a very broad range -- and this is why we believe that this can be a great asset to actually grow the company because if you combine from one side, you combine the Energica motorcycle view with all the branding that it already has as a manufacturer and you combine this with Energica Inside as the name says, we want to put inside our -- we want to put our technology inside other verticals. And we believe that this combination can be a win-win. I would say, win-win -- win for Energica, win for economics and win for investors who will believe in the project. Just to end, we are in our business plan, as Leo was showing, we made an estimate on the main target. We have top 3 segments on a global approach. Energica Inside side was, I would say, on a stealth mode already working in the past, particularly on the lightweight mobility in the low powertrain. Now we are aggressively bringing all the strategies to the table. So this is one of the early -- one the first time where we presented and more will be will be updated. But this is a division that we want to put on the ground and extend in the next 5 years. In terms of revenue, basically, we have a combination between light mobility and high performance. We we try to make a big cluster if there could be many more segmentally in the middle. But clearly, in the total line mobility, you have minor revenues but high volumes, while on the -- we see on the top with the racing and EBIT older and more margin. So one point is in the marine application, we are also targeting the battery packs because as you know, Energiac is now developing automated way to actually assemble battery packs. So we can actually be -- we can offer a broad range of solutions -- technical solutions for the different markets. I hand over to Livia back for the last part. Thank you.

This is just a talk. I got an inspiration. When I saw the proposal from Livewire when they decided to trial the IPO, it was really inspiring to me because they say that they have an enterprise value of $1.77 billion. And this more or less are the competitive advantages. So I made, let's say, homework. And I try to understand in this chart, what we are doing to be close to them. And so for example, from a branding point of view, of course, they can leverage a very important brand that is Harley Davidson, but it's very strong in the IC market. we have, anyway, a very strong brand in the EV market since more than 12 years ago. And we are still the MotoE series manufacturer, that is a global racing series with more than 400 million of views. So actually, we are anyway growing very fast from a branding point of view as well, and in particular in the EV industry. From since the network point of view again, they, of course, they will -- not all, but they will involve a part of their strong Harley Davidson sales network, but we are still growing as well, and now we have already more than 100 leaders worldwide. So the same we are growing very fast. And once more, they are not on the IC market, but you are only on EV market. So, again, 100% electric. From the manufacturing and supply chain point of view, again, they can leverage long experience, both in the production and in the supply chain of the IC. But what we have is 12 years of unique experience only in EV industry, scouting the best suppliers, testing them, doing the aftermarket and all the production needs that we are discovering every day but still focused only on 100% electric. Finally, the financial services that, of course, are strong for Harley Davidson a huge company. But thanks to Ideanomics, we're growing fast as well -- in this area as well, and we already have the U.S. growth brand, and we're working also outside of U.S. And from a market point of view, they have, any way, focused on 2 wheelers because this is what they do, as what we're doing with Energica side is to make diversification. So to reach not only the 2 main targets that they are approaching that is the light and the medium and heavy motorcycles. We are able to use those to approach also the line mobility markets and also all the other verticals that Carlo was saying, for example, aviation, marine and agricultural, industrial and so on. So what we're trying to say is that there is a very, very big opportunity for Energica because we are putting this know-how and this value in a much bigger market, a much bigger, total addressable market, much, much bigger. And so this is less risk and anyway, a much bigger opportunity. So yes, we don't have the history of Harley Davidson, we have much more also in the EV industry. So it's still an inspiration, but something that we should reflect. Thank you.

Myself and Robin are going to speak shortly now. I'm Alf Poor, I'm the CEO of Ideanomics. I'm the person who first met over a year ago with Livia and told her a story about the journey we're going on in EV and how I'd love Energica to be a part of that. Obviously, it started off with an investment. The relationship has grown in the past 12 months. And now we find ourselves as an amazing company within our family. Let's start by saying something pretty bold. I think Energica is probably one of the most significant companies from a technology perspective within the EV industry. What they've been able to do starting with high performance level is to get the performance, the reliability, the durability, the balance, everything you need to put into a high-performance motorcycle was the minimum bar that they went for, in terms of a customer experience. And in doing that, they tamed some very difficult technologies. Some of these technologies, as Livia was talking to. It's going to take Harley, Ducati, other folks in the space years, years, to get up to parity where at the same time, Giampiero and his team as the CTO are already doing the next phase, and it's going to take a long time. I think they've probably got a window here 5 to 10 years in which they're going to be the standout company in the motorcycle space. And so as we've got to know them in the last year or so, we've been really amazed, not only by what they've done by setting the bar high because it's always easier to take your performance down, okay, to take your power down. It's very hard to set it at such a high power as they did. And this is where the Energica Inside conversations starting to develop. Hey, you've got this to force technology, okay? What else could we do with it? This bike is so good, okay? And this drivetrain and this motor and everything you've got is so light, so much torque, so much power, so much performance, how can we take that and lend it to other areas to unlock additional revenue stream and set an edge apart from the rest of the crowd? And that's really what we've been working towards doing. And that's what Livia and the team have just done an amazing job on. I'm going to talk to you a little bit about how it fits into our broader mission. One of the things that Ideanomics has done and we're kind of undervalued for, I think Energica is one of the most undervalued underestimated assets in global EV. Every company that Ideanomics has either invested in or acquired or built from organically is based on technology. It's a very important point to understand. A lot of the folks in the EV space have gone for design and they put together technology that the sum of everybody else's parts, okay? All of the companies within the Ideanomics family and Energica is no exception, have differentiated market-leading technology. And that as the adoption curve starts in EV and particularly commercial EV, that's what's going to set us apart from the rest of the industry. Okay, we're having so many conversations right now with folks that you would consider competition, okay? Who need access to our tech, access to our competencies, access to our people. Because our people are industry leaders in each of our companies. We don't do things the same as everybody else. This is not how do I design a pretty looking vehicle and chuck everybody else's junk on it. No, we're building real tech, differentiated tech across the group. So I'm here to talk about Energica today, but you can look across our portfolio of companies and the Ideanomics family, it is really the future of EV technology. So what we're putting together here, and this is where Energica fits in real well, and I've given Robin, the unenviable task of making sense of all of this, is how do we partner with, acquire, invest in companies where we convertibly integrate? Because if everybody knows automotive, it's very incestuous, right? Partners, suppliers, they're all working with each other, trying to put together this jigsaw puzzle that is a vehicle that goes on the road. Adding the challenging systems and other things that we do as well. And we're always looking to see where there's efficiencies. So where can one part of Ideanomics assist another? We've already started to see that. Giampiero has been very kind with this time in the last year, helping us revamp the lower power motorbikes and mopeds at our 3 electric subsidies. They're going to have some great new products coming out this year. We've lent into their competencies, their knowledge, their know-how, their technology, to understand how to build not just a great high-performance motorbike, but hopefully build great ones at a lower power level, which is much more of a mass market product. So -- and we've already seen the benefits of combining our supply chain. We avoided a shutdown at Energica and semiconductors are a problem for everybody. It doesn't matter if you're a major global OEM or you're a company within the Ideanomics family. We were looking down the back at the sofa for microchips at the end of the year. Our supply chain teams were able to find them for Energica. If you think about a shutdown, okay, it stops production for a while, but it impacts families, it impacts a lot more, right? So Ideanomics worked hard, but the fabric of what we're trying to do here is each company leans into each other to get the most efficiency and the best and the value we can for shareholders. So I'm not going to say too much more as I want Robin to go into talk a little bit more about how everything does go together and I got a little bit after Robin speaks to talk to you about how and we put this all together commercially. So thank you very much.

You can hold on to that. Thank you. Robin Mackie, President of Mobility for Ideanomics. I mean, as you've seen outside, I'm a huge fan of the product. And I've got my name on for one of those bikes to be delivered in the U.S.A. But that's not why we bought this company. We're working with Livia and the rest of the team very, very closely. Our ambition is to build this company for value. The Energica Insideis a great example of the leverage that you can get from the technology base that exists there. Working alongside Giampiero for the past 12 months, we've been able to explore different aspects of Ideanomics' product strategies. We've looked at how we can apply some of the core technology that's within not only Energica, but also from the Ideanomics side. We have a portfolio of technology. We have expertise and know-how. I suppose the best example that working with Carlo at the moment is Solectrac. Solectrac has its own particular challenges in terms of weight, power, for a tractor. You wouldn't think that electric motorcycle, a high-performance electric cycle would have any synergy, but it does. It has synergy in the vehicle control unit development, the software development that Carlo was talking about earlier on, how we put our batteries together, they're going to be reliable and durable. Again, a lot of sharing of that technology to help us drive our new product introduction for Solectrac. So when you think about that as a vertical, that's our off-highway tractors, et cetera, that we're looking to build that out. You can see how we can combine the know-how expertise and the supply chains across the organization for a major advantage and not only cost and performance but in terms of value of the organization. So I'm not going to go on too much about it. Actually, Carlo has covered it very well. I'll just give you some more of the background. It's an exciting time for Ideanomics. It's an exciting time for every engineer in Ideanomics because they get to look inside these other organizations and to draw from that as they move the business forward. Thank you very much.

Let's take you through finally part of what we're doing with this -- the companies that are in the Ideanomics family. EV, it's a little different from [indiscernible] as Energica Inside starts to get traction. But right now, one of the biggest challenges the industry has is the buyer at the commercial level, okay, doesn't have information. We spend a huge amount of time consulting through an education and efficacy programs with our clients to help them understand. This is not, I need a new diesel truck or I need a new bus or I need a new bike, but this is a change for the energy. And I say this a lot, okay? The technology shift is really interesting, right? We're going from internal combustion engines, gasoline and diesel, okay, into electric. But that's not the really big economic shift that's taking place here. And really big economic shift is people are going to stop paying for gasoline and diesel, and they're going to start charging with electricity. At the home where it's convenient or out in the field or in a commercial environment, out of the depot, wherever it might be. And that's what most people haven't understood about what's happening in EV, okay? The global automotive, whether it's passenger cars, motor bikes or commercial vehicles, the size of that is an economy is dwarfed by the amount of dollars that we spend every year globally on gasoline and diesel to power these things, right? And that's why you've seen over the last 120 years, many OEMs come and go. Many manufacturers have come and gone, right? How many oil companies have come and gone, very few, right? So what we're seeing here is a very interesting transition in energy demand. And that's where the real money is. And that's why Ideanomics is not only in the product space, things with wheels on them, but are also in charging and energy as well. Because I think that's n of the biggest economic is, and that's where a large part of the future economy will be. So if we can take -- have a role to play there, we can participate in the energy demand but then we have a diversified revenue stream over just producing the vehicles themselves. So here's the kind of 5 fundamentals of what we're working on when we talk to commercial feed operations, okay? Without each of these 5 steps, you cannot make a sale, okay? And none of them at this point, know what to do because most of the companies that are going to them have a vertical product. I'm selling a charging unit or I'm selling a vehicle, okay? But they don't talk them through the whole process because if you're a commercial fleet customer right now, you're wondering, okay, what do I'm going do to bring in that charging equipment? Do I need energy storage? So I can supplement the grid with solar. What are the rebates available at a state level, what are the rebates available at the federal level. There's a huge conversation taking place. They don't have the answers to that they really didn't have to get into with an internal combustion engine vehicle. So we take through, we have design and planning team, or people understand their energy needs, help them understand the duty cycles, help them understand everything from the size of battery. A lot of people think just shot a big battery in there. Some vehicles don't need it. The UPS is the FedEx, the Amazons is the Walmarts of the world that are doing local last-mile delivery. Those vehicles only go 40, 50 miles a day. They don't need to pay for a big expensive battery. They can have a smaller battery for the duty cycle and be able to work with it. So some of the design and planning stage is really, really important. These people need a guiding hand through the darkness. That's a big part of what we're offering right now. Again, efficient I'm not going to read it out to, but one of the most important things we do is we don't only sell our own vehicles, we're putting programs together in the commercial fleet operators right now that require vehicles that we don't have an offering for. So we work with other OEMs to bring those vehicles into the offering as well. And that's really interesting. And if you look at any global OEM, they don't have a full portfolio of every vehicle that a fleet operator needs, right? So it makes sense. So we are starting to work with other leading manufacturers that bring their vehicle in where we don't have an offering of that kind. Also, financial solutions, you're going to hear a lot of as a service in the future. All of these fleet operators are trying to move to cost per mile. They want to move from CapEx to OpEx. We're helping them with these vehicle as a service, charging as a service, compliant, mobility as a service offerings. But we've got some really interesting conversations. We're rounding out a closing the deal now where we're going to be providing everything but the energy and driver. Our owned vehicles, other people's vehicles, charging systems, storage, solar, all going into a package or paid for as a subscription. So they're procuring this as a service. That's a really important thing to do. Why? Because something is going to pay for this transition, right? There's a lot of cost here. It's not just replacing the vehicle. You've got to have the energy systems and your storage and other things if you're going to do it in commercial scale. How is that going to be paid for? That business model doesn't accommodate this shift in spending for this increase in spending. The short term, the good news for these focuses in the long term is a significant total cost of ownership, we're switching away from diesel to gasoline and into EV. How do you help them reach out and get access to that to cost of ownership? Intelligent financing products as service. Cut out the upfront commitment, give them a monthly subscription, okay? And that's the way that we're giving deals done. And this is even with commercial fleet operators that are the really big boys. The guys that we think have a balance sheet to jump in. Well, there's a reason they've got a balance sheet, they manage their businesses very, very well. They don't want to just spend the cash. They want to find cost-efficient, advantageous way to shift over into zero-emission vehicles. One of the cool things that comes with EVs is they come fully loaded with tech. Carlo talked about the fact that these are software enabled vehicles. We get everything from telematics, the battery conditioning, maintenance, prescriptive maintenance, a lot of other elements come out from the rich amount of data that's coming out of these vehicles now. We can pretty much manage and monitor the entire vehicle at all times. And the last piece here is very, very important to set this is a really big economic shift. And teach these people what it means to switch away from liquid petroleum fuels and into electricity. It's a big, big shift for these fleet operators. We learn a lot from the fleet operators. They take our vehicles on long testing programs, on long testing cycles. We get access to that information, so we understand out the testing and validation is working out, but we're also teaching them at the same time. That's a really important part of what the industry is struggling with at this point. So we look to offer that well-rounded service, that takes care of all their needs. There's a few companies out there, Ideanomics is one of them. We've built our offering from the ground up to be able to do exactly that. I think that will be the difference between winning and losing in the coming years. The adoption curve is just started. So you don't know who's who. We expect to see some heavy consolidation in the space in the next couple of years. This type of program will be what sets the winners from the losers. That's everything I've got to say this morning. Thank you all.

Thank you very much, everybody. We do have a little bit of time for some questions and answers. We have had some questions from our online community through our state platform. So just to kick that off, maybe I'll toss this over to you, Alf, to talk question as it come in maybe -- and you probably have already answered this, but maybe you could just give a more time. What strategic rationale was for the increased ownership in Energica?

I think when I met Livia, I met a really interesting entrepreneur. She's impatient for the success that you know is coming within Energica. And as we got to know each other better and we're talking through some of the business challenges, we started discussing how can we help? We're a public company -- U.S. public company. Valuations are better in North America than they are in Europe. We've got cheaper, easier access to capital that they had as a company listed on the exchange listed in Milan, which is a secondary exchange. So we started having a discussion about how we could lean into each other's strengths. And that's when we got into the conversation about how can we utilize some of what you kindly called competencies, but I would say expertise, a world-leading expertise so we can benefit across the rest of the group. And so at the same time, I'm selfishly getting access to their people and their technology and their knowledge and know-how. And Livia, for her business is doing what she needs to do which is getting easier to for access to capital to grow the business confidently. So we've really put this together as a symbiotic discussion. And I think that's the way that things always work out the best. Is it both parties have a need and come together? And I share Livia's vision. My job is to make sure that if she comes to me and says, "Hey, our business is growing faster than we expected", right, I've got to be the easiest one call for how to make okay, how much more capital are you going to need, right? How -- What can we do? How do we supercharge your results if we infuse more capital? And I want Livia and the team to focus on doing what they do really, really well because they were struggling in Italy to have the access to capital because the market is just a very different market there. There's no respect on some of the European stock exchanges for growth companies that are not yet profitable. And that was the real challenge. So for me to see a company like Energica that really is just the best of the best, okay? And then I talked to Livia about some of our frustrations and bringing in the right capital to grow the business. This was a very, very easy decision for Ideanomics to take it. We wrapped up the first investment very quickly because this -- for me, I was shocked there's a company of that quality in terms of its product and its team and its engineering capabilities that nobody else spent the time to go out and meet the team, drive the bikes, get to know them because that's probably one of the most undervalued assets in EV. And so for us, it was a very, very simple -- selfishly to put in more money and acquire the majority ownership, for us was just an incredibly easy decision. What we want to do here is we want to unlock this value that we all see, right, because this company is worth -- if you look at the example that we saw of [indiscernible] Livewire, right? There is no way that that's worth 20 to 25x what Energica is? No chance, right? But it currently is because it's got a big brand behind it. right? But in terms of technologies, this is one bike for Livewire. These guys have got a range of bikes, with more products to come. And we've got a whole diversified revenue stream from Energica Inside as well, right? Because this is such a good powerful lightweight, high torque, top performance, fast charging technology. It's way ahead of anything else in the market, right? It's our job now to tell that story to show that technology, to get other people using that technology through Energica Inside. And I think you'll just see this thing, the value of Energica within Ideanomics is just going to explode in the coming years. It really is such a sensational company.

We'd love to take the opportunity to open up to some of the questions from our Analysts and media reps. Please, Mike Shlisky, D.A. Davidson.

All right. Thank you very much. Alf, nice to see you again and great presentation. I guess I wanted to ask for a lot of growth in both parts of vehicles and the inside division. Do you have the capacity right now to fill all that demand or you need to build somewhere to get to kind of make it happen? And I also want to ask separately, do you do have multiple continents for localization purposes?

Currently, when you're dealing with a thoroughbred -- and I use that word correctly. This is a thoroughbred product. We don't want to take the manufacturing side of it, out of Motor Valley because we don't want to take away for many of its DNA. This is an Italian racing product, right? And as Livia said, they're based in Motor Valley. That's where Maserati, Lamborghini, Ducati, Ferrari are all there. And Livia spoke about it a little bit, which is that's a big weight on the team's shareholders because there was no room for error, there was no room to be anything other than exceptional because when you grow your company in that part the well, that's a really high bar you have to stick to. So we'll continue to build those out of there. Livia and the team have made some really sensible business savvy investments in the last year, a lot of semi automation equipment, things like that, so we can increase the throughput. I don't know much about that side. I mean, there's these 2 folks. So maybe you want to talk a little bit about what you've done to increase your throughput, but we're expanding the facility. As Livia mentioned, she's taking on the third building, but we do anticipate to continue building these out of automotive value. We just need the quality control. And like I said, this is a thoroughbred. So we don't want to dilute any of that value by moving it away from its Italian heritage. I've said it all. There's nothing left to say.

So yes, we've made some very smart investments in machining and semi automation equipment means we can produce more to answer your question.

On both sides, both the vehicles and the inside?

Yes.

There's going to be significant partnerships as well in terms of supply chain as you expand Energica Inside part of the business. So not all of that manufacturing will be done in.

A quick question for me. I'm Andres Sheppard-Slinger from Cantor Fitzgerald. How's it going? Alf, Robin, thanks for the presentation. Livia, thank you so much for being here, very excited. You talked about -- you provided some kind of numbers to 2027, both of the number of motorcycle sales, I think there were some revenue projections as well. I'm curious, how do you, in terms of the strategy, are you prioritizing the motorcycle sales, are you prioritizing kind of the integration of the technology? You mentioned [indiscernible] and aviation, for which we're very excited. So I'm just curious, how are you balancing those 2? Is there one that's more important in the short term and more in the long term?

Well, as you've seen, there is Carlo, the first big investment that we made was on the management. Because you're right -- the question before was very smart. It's clear that we are still growing, and so we have to structure our company. We are still structuring for motorcycles that we have structure for Energica Inside. So what we did is to start immediately to buy the people, to hire the people, the correct people to grow the company very fast. But again, we have also to make synergies with other companies. And that's why we are in this group because that is exactly what they made. I think that the strategy is very smart because you can't do anything by yourself. You can't do everything by yourself. You need the right partners. You need to make a network and to continue to build this network. So first of all, we are focusing now on the motorcycles because that is the big iceberg, okay, of the technology. I don't know if I'm using the correct words in English. But we say that, that is the peak of the iceberg and we need to keep a very brilliant, very visible because that is credibility. That is where we are. What we have learned so far and what we are continuously learning. So that is important. But under it, we are growing also the Energica Inside structure. So that's why there is Carlo. We are hiring more and more people. We are doing partnerships. Carlo just said a little because we are very schematic, you say this in English, no?

Cross fingers.

Yes, we say this, okay? Cross fingers, okay. I don't know it in english. Anyway.

Hopeful. We're hopeful. Right? Hopeful.

No, it's different. Anyway, because we are working with some companies to make an acquisition or just the partnerships. So we are growing not only hiring but also doing an effort. And that's the only way to grow so fast. It's really impossible to do everything by yourself. So we are already working on that since 2 years ago. We are improving now, thanks to them, because that's clear. Without capital, you have beautiful ideas, but you can put the power on the wheels. So we need to do this job very quickly, and that's why we are doing all these stuff that we have seen.

I'll just build on that. The racing series, the high-performance motorcycles are all kind of halo products. But what Livia and the team are doing is driving the technology boundaries forward all the time. What sits below that is the leveraging of that into other markets or higher volume. And that takes time. So you've got to have that halo effect going on in the front end, allowing Carlo to take the technology and reapply to non-competing markets. And I think you'll see the volume of business will increase, but the margins will be slightly different. You want to maintain that balance effectively.

And I think some of them are because you're building hardware, some of that's going to require more capacity people and other things in order to reach the scale of output that you need to capture the revenues. But one of the most compelling pieces of what they're doing with the Energica Inside is they've build a truly exceptional vehicle control unit. There's nothing like it in the market. Now a lot of that is software. We can take that out and we can license that or sell that to other folks and give them a significantly forward in terms of their EV plans. For other types of noncompeting vehicles, if you saw anything from marine to aviation to ATVs to construction equipment, you can stick one of these motors in a [indiscernible] and suddenly -- you're not pushing out diesel fumes or construction sites. And there are some elements here that are infinitely scalable, where they've got a truly, truly exceptional product, and we think that's going to be incredibly appealing to the market because it just will get people who are not currently electrified into electric so much quick because that's the difficult stuff to do, right? The vehicle control unit is a really difficult piece of technology to amass.

Exactly. I think that the VCU that we have has more lines, code lines than a space shuttle. So once that you do that, it varies action to the VCU [indiscernible].

Or as you saw when you visited Solectrac, same application, same technology, slightly different software settings to allow you to apply it to tractor.

Maybe one follow-up, if I may. As energy construction scale up, what percentage of kind of mobility do you see that representing in the next few years?

It's an interesting question. It's an interesting question. I mean, we have -- having acquisition of VIA Motors. The VIA is going to be a high production outfit, I mean they're going to produce 30,000, 40,000 vehicles a year and we'll be selling them for $40,000, $50,000 a piece, it will generate significant revenue. So the numbers just grow really big. So the piece that really excites me here is the motorcycle market is known globally. So as it starts the transition, Energica is going to be a market leader. So you can expect it to capture a similar size of market over time to what you see the Kawasaki and the Suzuki and the Ducati have now. I think the Energica Inside is a really exciting part. We've put some conservative numbers into what we've shown you today. But I think the sky is the limit for that. I really feel, I think there's an opportunity there for this to become a significant part of the mobility group through the Energica Inside sales.